UPDATE: Wells Fargo Downgrades VMware On High Growth Estimates (VMW)
In a note released Wednesday morning, Wells Fargo analyst Jason Maynard downgraded shares of VMware (NYSE: VMW) from Outperform to Market Perform and reduced his valuation range from $107-112 to $98-105.
The downgrade comes amid concerns that growth estimates for the company are too high. Maynard said the company relies on its new product areas to sustain growth and believes that as growth in the core business slows, new product areas will be unable to pickup the slack.
For the second quarter, Maynard is expecting VMware to post "decent" results. However, he is more bullish on the company's competitors and has reiterated Buys on Red Hat (NYSE: RHT) and Citrix Systems (NASDAQ: CTXS).
Latest Ratings for VMW
|Jul 2016||Deutsche Bank||Maintains||Hold|
|May 2016||Cowen & Company||Downgrades||Outperform||Market Perform|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.